From a general point of view, buying an insurance policy product directly from the insurance provider cuts out the middleman, in this case, the insurance broker. In other words, you are dealing with the insurance company directly rather than via an agent. Nevertheless, while you suppose you are saving on costs by going direct, nothing could be further from the truth. Further to that, buying directly from an insurance firm passes on a level of risk to the consumer, which many actually don't recognise exists. This article explains some reasons why consumers should use insurance brokers instead of buying insurance products directly from the insurance company.
A good deal at no extra cost
Brokers have at their disposal the capacity to promptly check charges and coverage with many insurance companies. Note that brokers normally work with a dozen insurance carriers. Given that rates often differ widely from one insurance company to another, they can get you an attractive deal, which you may not be able to get by yourself. Similar to comparison websites, insurance brokers are paid commissions by various insurance firms for selling their policy products. This simply means, as a consumer; you don't foot the bill for having the agent shop around a good deal for you.
One stop shop
Insurance brokers are your one-stop-shop for all your coverage requirements. Typically, agents don't just sell one insurance product. They sell a variety of insurance products including auto, health, renters, and business insurance among others. Moreover, on comparison websites, you will not unearth coverage for features like illness or income protection that ought to be tailored to complement your needs. Furthermore, you are less likely to find bespoke or special coverage on there. Therefore, if you want to cover something like a valuable antique or an art collection, an insurance agent will know where to get it for you.
A safety net
In the event that an agent does a blunder such as selling to you an insurance product that is meant to meet your requirements but fails to do so, that broker may be responsible to you for misconduct, which is known in insurance circles as errors and omissions. Every certified insurance broker enjoys errors and omissions coverage, similar to a surgeon who enjoys malpractice insurance coverage. You can file a lawsuit against the broker and their negligence insurance to receive compensation resulting from their failure to look after your interests. This a safety net that every consumer enjoys when dealing with a certified insurance broker. In contrast, when you choose to go direct, you have no certified and insured broker taking care of your interests. You are simply responsible for all your insurance decisions, and for the blunders, you are likely to commit. There's no existing level of protection.